AUDIT REPORT; OPPORTUNITIES INDUSTRIALIZATION CENTERS INTERNATIONAL, INC.; AUDIT REPORT NO. 75-315

OICI is under contract with AID to establish prototype vocational training centers patterned after the OIC approach of non-formal vocational training, remedial education, counseling, job placement, and private sector involvement. The audit encompasses Task orders 1 through 6 of AID/afr-653 which relate to OICI central office operations and efforts to establish OIC"s in Ghana, Nigeria, Kenya, and Ethiopia. Audit included a review of pertinent records and procedures at OICI"s office in Philadelphia. Costs claimed and reimbursed during the period totaling $1,222,699 have been audited. Of this amount, costs of $865,441 are accepted as proper under the terms of the contract and related task orders. Acceptance of the remaining $357,258 is deferred pending a determination as to allowability of the questioned costs by the contracting officer and the area auditor general for Africa. Auditors observed certain accounting and administrative problems needing improvement. There is a lack of procedures to provide reasonable accounting control over expenses and adherence to contract requirements. Consultants were hired without AID approval. A bookkeeper was hired which violated the 15-employee ceiling provision of the contract. Purchases in excess of $2,500 were not approved by the contracting officer. Auditors recommend that OICI secure written approval from contracting officer however difficult the task. There is a lack of adequate guidelines for allocating costs and revenue between the OICI general fund and the AID supported task orders. Travel and per diem cost are not adequately controlled to prevent violation of Standardized Government Travel Regulations and contract provisions. Accounting and control over fixed assets was also found to be deficient.